JCURVE SOLUTIONS LTD — AGM Information 2020

Nov 22, 2020

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JCurve Solutions (ASX: JCS) Annual General Meeting Presentation

23 November 2020 9:30am AEDT

www.jcurvesolutions.com

This release has been authorized by the JCS Board

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ASX: JCS

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IMPORTANT INFORMATION

Disclaimer

The information outlined in this AGM presentation (“Presentation”) has been prepared by JCurve Solutions Limited (“the Company”) and is delivered for informational purposes only.

The Company has prepared the Presentation Materials based on information available to it at the time of preparation. No attempt has been made to independently verify the information contained in this Presentation. The Presentation does not purport to contain all information that a prospective investor may require. While the information contained herein has been prepared in good faith, neither the Company nor its shareholders, directors, officers, agents, employees, or advisors give, has given or has the authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisors (all such information being referred to as “information”) and liability therefore is expressively disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisors take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss howsoever arising from the use of this Presentation. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

This Presentation should not be considered as the giving of investment advice or recommendations by the Company or any of its shareholders, directors, officers, agents, employees or advisors. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgement, analysis and assumption and each recipient should satisfy itself in relation to such matters.

This Presentation may contain “forward looking statements”. Where the Company expresses or implies an extension or belief as to future events or results such expectation or belief is expressed in good faith and believed to have reasonable basis. However, “forward looking statements” are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such “forward looking statements”. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this Presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.

All forward looking statements, forecasts and projections contained in this Presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein.

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

YOUR BOARD OF DIRECTORS

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Bruce Hatchman
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Non-Executive Chairman Appointed November 2014

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Bruce Hatchman was appointed as the Chairman of JCurve Solutions on 27 November 2014.

Bruce is an experienced and successful finance professional. As the former Chief Executive of Crowe Horwath, Bruce has over 40 years’ experience in providing audit and assurance, and M&A services to listed companies and other consulting services to large private enterprises. Bruce is a qualified Chartered Accountant and a member of the Australian Institute of Company Directors.

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David Franks
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Non-Executive Director & Secretary Appointed September 2014

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David Franks joined JCurve Solutions on 15 September 2014 as Company Secretary and a Non-Executive Director.

David is a Chartered Accountant, Fellow of the Financial Services Institute of Australia, Fellow of the Governance Institute of Australia, Justice of the Peace, Registered Tax Agent and holds a Bachelor of Economics (Finance and Accounting) from Macquarie University.

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Mark Jobling
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Non-Executive Director Appointed April 2015

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Mark Jobling joined the company on 8 April 2015 as a Non-Executive Director. Mark is a substantial shareholder of the Company and holds a Bachelor of Economics and Bachelor of Laws (Hons) from Monash University.

Mark manages investments in a diverse range of industries including power technology and angel investing in Asian start-up companies and is currently based in Hong Kong.

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Graham Baillie
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Non-Executive Director Reappointed August 2019

Graham Baillie originally joined the Company in 2007 as a non-executive Director and was appointed Chairman in 2012 before serving as the Managing Director for a short time and then Chairman. During this time, he saw the listing of JCurve Solutions Limited through Stratatel Limited. Prior to Graham’s involvement with the Company, he established and acted as CEO of Outsource Australia Pty Ltd (OSA – now known as Converga), developing the company nationally and internationally. Mr Baillie was also integral to the development of AUSDOC, and involved in establishing similar business operations in New Zealand, USA and United Kingdom.

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

YOUR COMPANY IS RESILIENT

The impact of COVID-19

• Created a significant impediment to new business sales

• Focus shifted to customer retention and reducing existing business expenditure rather than business growth

• Focused on regular employee and customer communications

• Business Continuity Plans were enacted for all offices with employees working from home

• Delayed the progression of M&A opportunities with opportunities stalling at the start of the pandemic due to the need to visit target operations being prohibited

The recovery

• We are resilient and resolute in our strategy to accelerate growth again

• We are starting to see new business and M&A opportunities re-emerge

• We are well placed to accelerate growth as economies recover from the COVID-19 pandemic

Our resilience is driven by

• Being a cloud-based business there was a seamless transition to operating under the Business Continuity Plans

• Having strong levels of contracted recurring revenue

• Sticky products and low churn

• The actions taken to reduce the cost base of the JCurve Solutions team and our executed strategy of pivoting away from solely relying on the SME ERP market

• Being geographically and operationally diverse

• Having strong solid financial foundations (strong cash reserves and debt-free)

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

OUR SOLUTION PORTFOLIO

We deliver cloud solutions and services that drive CLOUD improvement SERVICE TELECOMMUNICATION BUSINESS in business MANAGEMENT EXPENSE MANAGEMENT performance. SOLUTIONS MANAGEMENT SOLUTIONS SOLUTIONS (ERP) We have a diversified portfolio of business solutions which are at different stages in their business life cycles.

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

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OUR INVESTOR PROPOSITION

Consolidated Group

On current multiples (*) (FY2020 results and $8.6m market cap):

• 0.8x revenue

• 1x on consolidated recurring revenue base

• 12x Normalised EBITDA

(*) The multiples quoted assume none of the Company’s current cash balance is a surplus asset. The ratios quoted have been calculated directly from the Company’s market capitalisation as at 16 November 2020.

Strong Financial

Foundations

$11.2m

Revenue for FY2020

$0.7m

EBITDA for FY2020

$3.7m

cash at bank

• as at 31 October 2020

• Debt-free

• Growing recurring annual ERP commissions

Growth

• Well positioned for market trend towards cloud adoption

• Industry leading suite of products and services

• The acceleration of M&A opportunities during prevailing market conditions

• Confidence that recent acquisitions (Riyo and Spectrum) will deliver benefits over next 2 years

• Strong focus on an Asia strategy via current strategic ERP relationship as well as other standalone opportunities

Strong Operational Fundamentals

• Strategic relationship with a world leading vendor of cloud ERP software

• Established market reputation and footprint

• Experienced Board

• Experienced, industry recognised senior management team

• Attraction and retention of talented team members

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

OUR RECENT FINANCIAL RESULTS

Consolidated Group

We measure our overall business success and

position through three key metrics:

• Revenue performance

• EBITDA performance

• Cash position

• (*) Full year audited statutory results.

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Consolidated Revenue ()
$13,000,000
$12,000,000
$11,000,000
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
2016 2017 2018 2019 2020
Normalised EBITDA excluding impairment charge()
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2016 2017 2018 2019 2020
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Cash Balance
$3.1M $3.7M
as at 31 October 2019 as at 31 October 2020 ()
() $577,000 of government subsidies from the JobKeeper
Payment were received
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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

Cloud Business Management Solutions (ERP)

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

BUSINESS UPDATE - CLOUD BUSINESS MANAGEMENT SOLUTIONS (ERP)

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Our Model

We acquire new customers, delight them with exceptional customer experience and a world-class product so that they stay with us, grow with us, buy more services and solutions from us, and refer more customers to us.

www.jcurvesolutions.com/customers

We use the following four key metrics to measure the success of our ERP practice:

Acquisition

ARR Deal Size Acquisition Churn Annual Average Net The number of The percentage customers and Recurring Income per New of Annual licensed users Revenue Business Sale Recurring (annualised Revenue lost licence and each year from support the customer income) renewal base

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

BUSINESS UPDATE - CLOUD BUSINESS MANAGEMENT SOLUTIONS (ERP)

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ARR

The annualised contracted recurring revenue across the ERP contract base. This represents $7,000,000 the net licence fees, plus support of our customer base. $6,000,000 Protecting ARR through the COVID-19 pandemic was key. While we didn’t see the $5,000,000 growth of previous years, we navigated this period without a significant reduction in ARR. $4,000,000 The long-term trend is we expect to see ARR grow as a result of the following factors: $3,000,000 • Each year we acquire larger customers who buy more licenses/support $2,000,000 • Our existing customers grow and $1,000,000 purchase more licenses/support • We retain our customers better and see $- 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

• We retain our customers better and see reducing levels of churn

$7M

Current annualised contracted recurring revenue

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

BUSINESS UPDATE - CLOUD BUSINESS MANAGEMENT SOLUTIONS (ERP)

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Average Net Income Per New Business Sale

This is the licence commission received on NetSuite edition customers or licence fee charged for JCurve ERP customers, plus implementation fees, plus support plus any third-party products.

The growth in AIPS is due to:

• An increase in the average size of our new customers with more sales of mid-market NetSuite editions

• Increased additional modules and professional services sold

Average Net Income Per New Business Sale (AIPS)

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$50,000
$45,000 $40,000 $44K
$35,000 FY2020
$30,000 Average AIPS
$25,000
$20,000
$15,000
$10,000
$5,000
$-
2015 2016 2017 2018 2019 2020
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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

BUSINESS UPDATE - CLOUD BUSINESS MANAGEMENT SOLUTIONS (ERP)

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Customers by NetSuite ERP Solution Edition

Customer Acquisition

Since becoming a NetSuite Solution Provider in 2016, our focus has moved to larger mid-market and enterprise customers. Larger customers deliver increased ongoing revenue and are more profitable.

The majority of our NetSuite edition clients have been acquired in the last three years.

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700
600
Number of JCurve ERP
edition customers
500
Number of NetSuite
400 edition customers
Total of ERP customers
300 >600
200 Current # ERP
Customers
100
0
2014 2015 2016 2017 2018 2019 2020
Number of Recurring NetSuite ERP licenses
5,000
4,500
4,000
3,500
4K+
3,000
2,500
Current #
2,000
ERP Users
1,500
1,000
500
-
2015 2016 2017 2018 2019 2020
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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

BUSINESS UPDATE - CLOUD BUSINESS MANAGEMENT SOLUTIONS (ERP)

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Churn ERP Churn by Contract Value
16%
The reduction in churn has been
14%
achieved from: 6%
• 12%
Our dedicated support/customer
FY2020
success team focusing on Churn
10%
delivering an exceptional customer
experience
8%
•
The move to larger, more stable
customers 6%
4%
2%
0%
2015 2016 2017 2018 2019 2020
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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

CLOUD BUSINESS MANAGEMENT SOLUTIONS (ERP)

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What to expect in FY2021

• Continued growth in licensed users as our average customer size increases

• Increasing levels of unearned income as we sell to larger customers whose implementation takes longer to complete

• Continued growth in the average deal size of new customer wins. See customer win update below

• Further M&A activity in Asia once the impact of Covid-19 subsides

• Continued growth in ARR

• Strengthen our position as Oracle NetSuite’s #1 ERP partner

• Relatively static customer numbers in Australia as we focus on larger customer wins and the customer mix shifts away from Small Business

• Moderate growth from the Australian ERP practice

• Accelerating growth from the Asia ERP practice

• Maintain Oracle NetSuite 5-star status

• Continue to lower our cost base through continued growth of our JCS Philippines delivery centre of excellence

• Gross margin growth

• Re-investment of profit and cashflow into opportunities once the impact of Covid-19 subsides

FY2021 Customer win update: In November 2020 JCurve Solutions won its largest ERP initial customer contract worth $1.7m of revenue over the signed five-year contract (sales income of $827,000 expected to be invoiced in FY2021)

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

Service Management Solutions

JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020 15

BUSINESS UPDATE - SERVICE MANAGEMENT SOLUTIONS

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What have we have achieved so far?

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July Feb Feb Oct
May 2018 Jan 2019 March 2020 March 2020
2018 2019 2019 2020
Trial Customers
Enterprise
JCS Riyo Completed development Soft launch and product enhancements channel Major Australian Enterprisechannel
Acquired Team set up of platform and first paying partnership Government partnership
Riyo customers signed Utility signed signed
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Current business profile

What to expect in FY2021

• 11 Customers

• Growing customer numbers

• 200 Subscribed Users

• Rapidly increasing revenue contribution in FY2021

• $100k recurring licence revenue

• Increasing levels of unearned income

• 2 Global channel partners

• Establishment of channel partnerships

• Global business opportunities

• Being profitable in FY2022

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

BUSINESS UPDATE - SERVICE MANAGEMENT SOLUTIONS

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Businesses that may benefit from our Riyo solution

Riyo in the news and press

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Post-purchase Healthcare and Aged and disability assembly and medical services care Installation Inspection and Insurance inspection Maintenance assessment and assessment

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Cleaning services Pest control Specialised transportation Facilities Real estate management management Storage services

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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020 17

Telecommunication Expense Management Solutions

JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020 18

BUSINESS UPDATE - TELECOMMUNICATION EXPENSE MANAGEMENT SOLUTIONS

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TEMS Statutory Profit (ex impairment)

What to expect in FY2021

• Ongoing profitable contribution to JCS

• Continued support for TEM solutions

• Ongoing churn

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$2,000,000
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000 >50
$600,000
$400,000 Customers
$200,000
$-
2016 2017 2018 2019 2020
TEMS Revenue
$5,000,000
$4,500,000 $4,000,000 10%
$3,500,000
Annualised Customer
$3,000,000
$2,500,000 Churn for the past 12 months
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
2016 2017 2018 2019 2020
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JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020

Strategic Direction

JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020 20

BUSINESS STRATEGY

We currently have four key strategic priorities

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Profitably Grow ERP in Rapidly Grow JCS ERP in Asia Accelerate Global Riyo go to Australia market

• Grow ERP Sales from

• • Win new business in midSingapore and Philippines market offices

  • Product enhancements from existing customer feedback

  • • Expand into the existing customer base

• Grow JCS Philippines centre of excellence delivery team

• Increase upsell to existing customers

• Establish the JCS brand in Asia

• Reduce customer churn

• • Looking for value accretive acquisitions

• Asia • Focus on larger

• • Further M&A activities opportunities • Look beyond Australia

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Increase shareholder value

• We are focused on delivering value to shareholders through share price growth

• Short term focus on core operating fundamentals during the COVID-19 pandemic, but we are now looking to drive growth

• With no debt and strong cash we are seeking to deliver the right opportunity for the best shareholder outcome

JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020 21

CAPITAL STRUCTURE, HISTORY AND SHAREHOLDERS

Key Statistics (ASX: JCS)	As at 16/11/2020	Ordinary Fully Paid Shares as at 16/11/2020	Units	% of Units
Share Price	$0.026	Directors and Executive Interests	148,598,642	45.32%
Shares on Issue	327,856,900	Other Top 20 Holders	105,006,616	32.03%
Performance Rights	9,800,000	Remaining Holders	74,251,642	22.65%
Market Capitalisation	$8.6m	Substantial Shareholders (*)	Units	% of Units
Cash	$3.9m	Gramell Investments Pty Limited	83,124,215	25.35 %
Debt	Nil	Mr. Mark Jobling	50,704,301	15.47 %
Enterprise Value	$4.7m	Dr. Philip Ewart and related entities (*) last substantial shareholder notice lodged	44,328,672	13.52%
52 week high / low share price	$0.021 / $0.038
5-year historical	share price graph
Source:https://www2.asx.com.au/markets/company/jcs

JCURVE SOLUTIONS AGM PRESENTATION NOVEMBER 2020 22

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Contact Details: enquiries@jcurve.com.au +61 2 9037 7200

www.jcurvesolutions.com

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